The above keys are what I used for the BCP out and BCP in. In the case of BCP out, you can see that I am using -n for output. I believe that is the most compressed. But if you want to play with BCP, you can check it out. Heck, you can even do all of that research
outside of SQLAzureMW.

Now, in regards to diskspace, while you are looking at SQLAzureMW.exe.config, look for: